Real estate in Spain

Spain is a large, economically developed European country located in southwestern Europe (the Iberian Peninsula) and partly in Africa.

Its form of government is a republican monarchy.

The country shares borders with Portugal, France, Andorra, Morocco, and Gibraltar.

The country has a permanent population of 47,500,000. Its largest cities are the capital, Madrid; Barcelona, ​​the capital of the Catalan region; Malaga; Seville; Valencia; Zaragoza; and Murcia.

Spain's economy is based on industry, energy, agriculture, tourism (which accounts for approximately 10% of GDP), and construction and real estate.

Spain: An Attractive Real Estate Market for Investors

Spain has experienced relatively high demand for new and existing properties (retail demand accounts for 80% of residential demand), which is not fully met by the new builds being built annually by Spanish and international developers. The Spanish government is making significant efforts to improve the housing market.

The ECB has lowered interest rates, making mortgage rates in Spain more affordable. This is expected to increase the number of mortgages obtained by Spanish buyers to over 400,000 by 2025 alone. This same factor should theoretically lead to an increase in the rate of new construction in the country. All of this could reduce property price appreciation, which has reached up to 10% per year in recent years.

Investing in Spanish Real Estate

The cities where the majority of real estate transactions occur are Madrid and Catalonia, accounting for almost half of all property sales in Spain. Of all property types, residential properties, followed by hotels, are the most popular. They account for approximately 55% of all transactions in the Spanish real estate market. Commercial retail properties, office buildings, and warehouses are the next most popular.

The majority of foreign real estate investors are citizens of the European Union (55% of foreign buyers) and other European countries (approximately 20% of property buyers). British citizens lead all foreign property buyers, followed by investors from Germany and the Netherlands. Among the remaining investors, buyers from Morocco and China account for a significant share.

Statistics from major Spanish real estate agencies indicate that Spanish properties are often purchased not for personal residence, but for short-term and long-term rental businesses. This significantly impacts property prices.

Another significant factor is the higher returns on real estate investments compared to stock market investments. This motivates a large number of investors to invest significant amounts of capital in real estate, driving price growth not only in large and tourist cities but also in relatively smaller towns that were previously unpopular with investors.

Pros and cons of buying property through a real estate agency

Advantages of purchasing property through a Spanish real estate agency:

1. Legal guarantees. Real estate agencies verify the title deeds for each property, reducing the risk of investment loss;
2. Time savings when selecting a property;
3. Transaction support at all stages of the real estate transaction, from the property search to registering the property with the state registry;
4. Access to exclusive offers from a specific real estate agency;

Disadvantages of purchasing property through a Spanish real estate agency:

1. Commission. The standard real estate agency fee is 3-5% of the property price, which can increase the overall property purchase budget;
2. Risk of unscrupulous services. Some agencies may inflate prices or conceal property defects.

Real Estate Prices in Spain

Barcelona was the first city to experience a rapid rise in the price per square meter, followed by Madrid, Valencia, and Seville.

Currently, the price per square meter of real estate in prime Spanish locations is among the highest in Europe. In Barcelona, ​​the average price per square meter is €3,200, with the most expensive district, Sarrià Sant Gervasi, offering properties for €4,200 per square meter. In Madrid, prices are slightly lower than the average price per square meter, at €2,700. However, Madrid is home to the most expensive district of all major Spanish cities: the price per square meter in the Salamanca district is €4,700.

In Seville, the average property price is €2,400 per square metre, while in Valencia it is only €1,300 per square metre, yet the average property price increase in these locations is up to 9%.

Real Estate Developers in Spain

Several dozen large construction companies, as well as hundreds of small and medium-sized real estate developers, are constantly operating in Spain, constructing new, modern, high-quality residential and commercial properties according to European standards. Most residential real estate in Spain consists of apartments in residential complexes of varying heights, but individual residential construction is also well-developed. Spain boasts numerous gated communities with houses, villas, mansions, cottages, and townhouses with private plots.

Commercial real estate construction is also well-developed, with the hotel sector leading the way, followed by retail real estate, office buildings, warehouses, and industrial facilities.

Kronos Homes is a Spanish construction company founded in 2014 by several European and American investors. The real estate developer is actively building projects in Madrid, Barcelona, ​​Valencia, Malaga, Seville, Alicante, Cadiz, and Cordoba. One of the developer's signature projects is the Ikon Tower in Valencia. Kronos Homes, a construction company, places great emphasis on high-quality architecture and sophisticated design in its projects. The company regularly collaborates with renowned international designers, including Jean Porsche, Pepe Leal, and Beatriz Silveira. The developer places particular emphasis on the development of the urban space surrounding its projects.

Amenabar is a Spanish construction company building real estate in Madrid, Malaga, Barcelona, ​​Navarre, and La Rioja. The developer began operations in the Basque Country region in 1981. The company operates without the participation of debt from major funds.

Pryconsa is a Spanish developer. The construction company has completed most of its projects in Madrid, the capital of Spain. The company places great emphasis on quality architecture, design, and construction using modern technologies. Many of the company's projects utilize remote management technologies from Google, Apple, and Amazon.

Real Estate Agencies in Spain

The real estate market in Spain is served by thousands of real estate agencies and individual real estate agents specializing in Spanish real estate. Real estate agencies vary by region of operation, specialization (residential or commercial real estate), and the number and qualifications of their staff. In Spain, there is no law requiring real estate agents to be licensed, but in some regions of the country (Catalonia, Andalusia, Valencia), a real estate license is mandatory.

How to Choose a Reliable Real Estate Agency in Spain

Factors for Choosing a Professional Real Estate Agency in Spain:

• Good Reviews. Pay attention to reviews of real estate agencies and individual real estate agents;
• Use ratings of the best developers and agencies to select reliable partners;
• Ensure that the real estate agency has the necessary licenses to operate in the Spanish real estate market (if real estate activities are licensed in the region);

Spain's Tourist Attractions

Many tourists come to Spain for a beach holiday. One of the main beach destinations is the Costa Dorada, a 200-kilometer stretch of coastline in northeastern Spain along the Mediterranean Sea.

Popular resorts on the Costa Dorada include Salou, La Pineda, and Cambrils. Salou is the largest city on the coast, ideal for active youth vacations. La Pineda is famous for its sandy beaches and beautiful coves. Cambrils is a small resort town ideal for a family vacation. Another important beach resort in Spain is the Costa Brava, renowned worldwide for its beautiful, clean beaches with turquoise waters, as well as its infrastructure for water sports, particularly diving. Near the Costa Brava, there's another Catalan coastline with incredible sandy beaches – the Costa del Maresme.

The Costa del Sol, a 300-kilometer stretch of coastline between the Strait of Gibraltar and Malaga, is the warmest resort in Spain. Popular tourist destinations include Malaga, Marbella, and Mijas. This location is one of the most expensive in the country, making it a popular choice for wealthy families. The Balearic Islands, particularly Mallorca and Ibiza, are considered the most expensive resorts in Spain. These are the most visited islands in Spain, boasting not only magnificent sandy beaches but also nightclubs and large shopping malls. Mallorca is also renowned for its pleasant, warm climate year-round, beautiful mountain ranges, and dense forests.

The most important tourist regions of Spain are Catalonia, Andalusia, Aragon, the Balearic Islands, and the Canary Islands. Catalonia boasts several hundred kilometers of beautiful sandy beaches, ideal for those seeking a relaxing holiday. The region's capital is Barcelona, ​​home to numerous historical and architectural landmarks. Catalonia boasts a diverse natural landscape, including forests, lakes, and the Pyrenees.

Andalusia is a region renowned not only for its beaches but also for its numerous festivals and celebrations. Aragon is surrounded by the Pyrenees, Cantabrian, Iberian, and Catalan Mountains.

It boasts numerous thermal springs, prized by tourists. Off the coast of Africa lies the Canary Islands, the principal island of which is Tenerife. Tenerife hosts one of the world's largest carnivals every February. The island boasts numerous beaches, volcanic sand, and other natural attractions. It is a UNESCO World Heritage Site.

To make the right choice when buying real estate, and the investment process is safe and effective, check out the rating of real estate developers in Spain and reviews of Spanish real estate agencies. This will help you get a complete picture of the market and choose a reliable partner.